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CWENA or ORA: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Clearway Energy (CWENA) or Ormat Technologies (ORA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Clearway Energy has a Zacks Rank of #2 (Buy), while Ormat Technologies has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CWENA has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CWENA currently has a forward P/E ratio of 31.29, while ORA has a forward P/E of 50.95. We also note that CWENA has a PEG ratio of 0.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ORA currently has a PEG ratio of 5.09.
Another notable valuation metric for CWENA is its P/B ratio of 1.18. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ORA has a P/B of 2.59.
These metrics, and several others, help CWENA earn a Value grade of B, while ORA has been given a Value grade of D.
CWENA has seen stronger estimate revision activity and sports more attractive valuation metrics than ORA, so it seems like value investors will conclude that CWENA is the superior option right now.
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CWENA or ORA: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Clearway Energy (CWENA) or Ormat Technologies (ORA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Clearway Energy has a Zacks Rank of #2 (Buy), while Ormat Technologies has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CWENA has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CWENA currently has a forward P/E ratio of 31.29, while ORA has a forward P/E of 50.95. We also note that CWENA has a PEG ratio of 0.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ORA currently has a PEG ratio of 5.09.
Another notable valuation metric for CWENA is its P/B ratio of 1.18. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ORA has a P/B of 2.59.
These metrics, and several others, help CWENA earn a Value grade of B, while ORA has been given a Value grade of D.
CWENA has seen stronger estimate revision activity and sports more attractive valuation metrics than ORA, so it seems like value investors will conclude that CWENA is the superior option right now.